ESKOM'S "greedy" plan to double the price of electricity will be in the spotlight today when a series of public hearings kick off in Cape Town, amid threats of protests by disapproving unions and civil society.
The National Energy Regulator of SA (Nersa) will hear oral submissions from union federation Cosatu and the National Union of Metalworkers - both of which were vehemently opposed to Eskom's plans to charge consumers more. Like other civil formations, the two have raised concerns that if Nersa approves the 16% the country runs the risk of job losses and shut-down of many companies.
Eskom has admitted this much in one of its documents, that such an increase poses a threat to jobs in energy-intensive sectors such as mining and manufacturing. But it defended its application for the above-inflation price hikes, saying it needed to be in a position to finance its power expansion programme.
It said this high increase was also an attempt to strike a balance between keeping the lights on and ensuring its financial stability and encouraging high levels of investments in its power generating capacity.
Steel giant ArcelorMittal and the Chamber of Commerce and Industry would be among those who would today try to convince the energy regulator against the exuberant and prolonged price increase. - nhlabathih@sowetan.co.za
Eskom price hike uproar
ESKOM'S "greedy" plan to double the price of electricity will be in the spotlight today when a series of public hearings kick off in Cape Town, amid threats of protests by disapproving unions and civil society.
The National Energy Regulator of SA (Nersa) will hear oral submissions from union federation Cosatu and the National Union of Metalworkers - both of which were vehemently opposed to Eskom's plans to charge consumers more. Like other civil formations, the two have raised concerns that if Nersa approves the 16% the country runs the risk of job losses and shut-down of many companies.
Eskom has admitted this much in one of its documents, that such an increase poses a threat to jobs in energy-intensive sectors such as mining and manufacturing. But it defended its application for the above-inflation price hikes, saying it needed to be in a position to finance its power expansion programme.
It said this high increase was also an attempt to strike a balance between keeping the lights on and ensuring its financial stability and encouraging high levels of investments in its power generating capacity.
Steel giant ArcelorMittal and the Chamber of Commerce and Industry would be among those who would today try to convince the energy regulator against the exuberant and prolonged price increase. - nhlabathih@sowetan.co.za
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